Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 15, 2003--Alloy, Inc. (Nasdaq:ALOY), a media, marketing services, direct marketing and retail company targeting the dynamic Generation Y population, today announced that it has filed a Form 12b-25 "Notification of Late Filing" with the Securities and Exchange Commission with respect to its fiscal third quarter report on Form 10-Q. The Company's completion of its quarterly financial statements for the three and nine months ended October 31, 2003 and the review of such financial statements by its independent auditors are pending as a result of the previously announced investigation by the Company's Audit Committee and the law firm of Mayer, Brown, Rowe & Maw, LLP into the allegations raised in the consolidated class action complaint filed against Alloy in August 2003 and the derivative action filed in October 2003, and the additional financial review procedures associated with the dELiA..s Corp. acquisition. Although the independent investigation and additional financial review have been completed, the Company was unable to complete such financial statements and obtain the review of such statements by its independent auditors by the close of business today without unreasonable effort or expense. The Company anticipates that such financial statements and such review will be completed in time for the Form 10-Q for its fiscal third quarter to be filed prior to the expiration of the five (5) calendar day extension period it obtained by the filing of the Form 12b-25. The Company does not anticipate that the results reported in such financial statements will differ materially from those reported in its December 11, 2003 earnings release.

About Alloy

Alloy, Inc. is a media, marketing services, direct marketing and retail company targeting Generation Y, a key demographic segment comprising the more than 60 million boys and girls in the United States between the ages of 10 and 24. Alloy's convergent media model uses a wide range of media assets to reach more than 25 million Generation Y consumers each month. Through Alloy's 360 Youth media and marketing services unit, marketers can connect with the Generation Y audience through a host of advertising and marketing programs incorporating Alloy's media and marketing assets such as direct mail catalogs, college and high school newspapers, Web sites, school-based media boards, college guides, and sponsored on- and off-campus events. Alloy generates revenue from its broad reach in the Generation Y community by providing marketers advertising and marketing services through 360 Youth and by selling apparel, accessories, footwear, room furnishings and action sports equipment directly to the youth market through catalogs, Web sites and retail stores. For further information regarding Alloy, please visit our Web site (www.alloyinc.com) and click on "Investor Relations". Information on 360 Youth's marketing services can be found at www.360youth.com.

This announcement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding our expectations and beliefs regarding our future results or performance. Because these statements apply to future events, they are subject to risks and uncertainties. When used in this announcement, the words "anticipate", "believe", "estimate", "expect", "expectation", "project" and "intend" and similar expressions are intended to identify such forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements. Additionally, you should not consider past results to be an indication of our future performance. Factors that might cause or contribute to such differences include, among others, our ability to: increase revenues, generate high margin sponsorship and multiple revenue streams, increase visitors to our Web sites (www.alloy.com, www.ccs.com, and www.danscomp.com) and build customer loyalty; develop our sales and marketing teams and capitalize on these efforts, develop commercial relationships with advertisers and the continued resilience in advertising spending to reach the teen market; manage the risks and challenges associated with integrating newly acquired businesses; and identify and take advantage of strategic, synergistic acquisitions and other revenue opportunities. Other relevant factors include, without limitation: our competition; seasonal sales fluctuations; the uncertain economic and political climate in the United States and throughout the rest of the world and the potential that such climate may deteriorate further; and general economic conditions. For a discussion of certain of the foregoing factors and other risk factors see the "Risk Factors That May Affect Future Results" section included in our annual report on Form 10-K for the year ended January 31, 2003, as amended, which is on file with the Securities and Exchange Commission. We do not intend to update any of the forward-looking statements after the date of this announcement to conform these statements to actual results or to changes in management's expectations, except as may be required by law.

    CONTACT: Alloy, Inc.
             Sam Gradess,             or
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             Kurt Genden,